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HomeMy WebLinkAbout09-14-15 Personnel and Finance PERSONNEL&FINANCE SEPTEMBER 14,2015 4:55 P.M. Committee Members Present: Karen White,Valerie Schey(XAB), Derek Dieter(XAB), Dr. Fred Ferlic Citizen Members Present: Valerie Mora-Kraus(AB), Charnelle Mayfield-Martin (AB) Other Council Present: Tim Scott, Henry Davis,Oliver Davis, Dr. David Varner, Gavin Ferlic Others Present: Carolyn Smith (St.Joe Co. Health Dept.),Tasha Outlaw, Jill Sciccitano (DTSB) Agenda: Bill No.45-15 Amend Chapter 4 of SBMC Including New Regulations Addressing Mobile Food Vendors, Mobile Food Vending Vehicles, and Updating Restaurant Regulations Councilmember Karen White, Chair of the Personal& Finance Committee, noted that even without a Committee quorum,the hearing to consider bill 45-15 would proceed. Bill 45-15 would amend chapter 4 of the South Bend Municipal Code by including new regulations addressing mobile food vendors, mobile food vending vehicles, and updating restaurant regulations. The bill was initiated by the Community Investment Department and Downtown South Bend (DTSB) in particular. Along the way,after filing, it picked up three co-sponsors from the Council,Tim Scott,Gavin Ferlic, and Oliver Davis. The Cover letter from Community Investment Department filed with the bill briefly explains the purpose and intent of the initiative and is attached. Scott Ford, Director of Community Investment,with the help of two staffers,Sarah Heintzlman, Michelle Adams and a PowerPoint made the presentation. This too is attached. Adding to the presentation was Jill Sciccitano, Director of Business Engagement for DTSB. Following the presentation during the Council question portion,two Councilmembers in particular expressed concern with the consequential effect a mobile food unit would have on downtown brick and mortar businesses. Though assurances were given that downtown restaurants were supportive the questioners seemed unconvinced. This was also the case for the effect on downtown parking which the Council felt was already limited at best. In response to the misgivings both the Community Investment staff and co-sponsoring Councilmembers said they would review the ordinance after 6 months for possible adjustments or changes. Carolyn Smith from the St.Joseph County Health Department was on board with inspections and related matters. 1 • Several citizens offered their support for the mobile food vendor initiative. After a number of"what if" discussions among Councilmembers and the Community Investment staff, Karen reminded everyone that due to the lack of a quorum no action could be taken. The bill would be forwarded to full Council without recommendation. Before adjourning, Karen reiterated that her request that Council questions regarding the budget process be sent to her was not intended to "filter" questions. Her intent was to share concerns with everyone to encourage engagement of all Councilmembers in the budget review process. Karen adjourned the meeting at 5:33 P.M. kit Respectfully Submitted, ‘Se7C-A.------, • Karen L. White, Chairperson Personnel & Finance Committee 2 • 227 W.JEFFERSON BOULEVARD 'ra, ��� y' PHONE:574/235-9371 SUITE 1400 S. ?u � �� ,,,, o; FAX:574/235-9021 SoumH BEND,IN46601-1830 Wy���„v4, �F 1865 CITY OF SOUTH BEND PETE BUTTIGIEG,MAYOR COMMUNITY INVESTMENT SCOTT FORD,EXECUTIVE DIRECTOR August 19,2015 Councilman Tim Scott Personnel&Finance Committee South Bend Common Council 4th Floor, County City Building South Bend, IN 46601 Dear Councilman Tim Scott: The Department of Community Investment seeks to amend the restaurant ordinance to include mobile food trucks as an allowable business type within the City of South Bend. Attached is an amended ordinance revising various subsections of Chapter 4,Article 4, Section 4-45 of the South Bend Municipal Code inclusive of new regulations addressing mobile food trucks,and updating restaurant regulations. The Department of Community Investment has worked closely with the St. Joseph County Health Department,which enforces the State health guidelines,to ensure all concerns regarding food safety is handled properly. The BPW, Building, Fire, Legal,DTSB, and-lcathy-F-aprand have reviewed the ordinance and are all satisfied with the changes being recommended. Nationally,the mobile food truck industry has increased a great deal in recent years and has led to the creation of many new businesses and jobs. Amending the local ordinance to allow mobile food trucks will foster entrepreneurial opportunity for new and expanding restaurants, create vibrancy in downtown,and provide additional food options for businesses in the outlying areas of the city. With your approval,the Department of Community Investment staff will present the amendment to the restaurant ordinance(Chapter 4,Article 4, Section 4-45)to Personnel and Finance Committee and the Common Council on A4agust-24720-1-5. . 1,4, 3015 Thank You, Chris Fielding Director of Business Development Department of Community Investment PLANNING NEIGHBORHOOD ENGAGEMENT BUSINESS DEVELOPMENT ECONOMIC RESOURCES JITIN KAM PAMELA C.MEYER CHRIS FIELDING BROCK ZEEB liicOtr\-t, � _ ) sawG °' (---vup ,G Mobile Food Trucks A New Opportunity for Entrepreneurs and South Bend's Food Culture September 14, 2015 _ _ DCI is here today to request that the common council allow an amendment to the restaurant ordinance to include mobile food trucks as an allowable business type in South Bend. This will allow for a legal basis to operate food trucks, cultivate entrepreneurship and foster expansion of South Bends food culture. Giving that we are already amending the restaurant ordinance, we are taking this opportunity to align our ordinance with the St. Joseph County Health Dept. where it addresses all establishments that provide food & beverage services. Such as hotel & motels that provide continental breakfast & retail stores that contain soda fountains, coffee dispensers & slushy machines. 1 AGENDA 1. Food Truck History 2. Food Trucks Defined 3. The Benefits of Food Trucks 4. National Food Truck Trends 5. The Process 6. Parking and Operating Requirements 7. Public Safety 8. Licensing and Fees 9. Food Truck Myths 2 Food Truck History • Only hot dog carts are permitted • Current Ordinance does not permit Food Trucks in St. Joseph County • Department of Community Investment began investigating feasibility in 2014 after numerous inquiries from the private sector In the past, the St. Joseph County Health Dept. only allowed for hot dog carts to be permitted on a daily basis. Food Trucks were only allowed on a temporary basis as long as they were connected to an event such as a fair, festival, or a wedding. In these situations, the city would issue a restaurant license for the food truck as well as an open-air business license for the location , which would have to be approved by the following departments, the Board of Public Works, Building, Fire, and the Health Department. In 2014 after numerous inquiries from the private sector, the Dept. of Community Investment began investigating the feasibility of food trucks. 3 What are Food Trucks? :-.'":"-::::.-- • ••• —-1 .` . -:-,“sW. ':%:—..%, p.-.-- cc. ii TR n I:i.11 ' r : 1-_ �'i"�:� c SWEETS ; 1 _ ► � . : + 0 LIB, -1,.1` ! n e ,..w.....,-tin i f iq 4 A Mobile Food Truck is : A licensed motorized vehicle that is enclosed, self-contained, and serves food items to the general public. Food items may be prepared, cooked, and assembled in the vehicle or may have been prepared, wrapped, or packaged in a licensed food establishment. *As defined by St. Joseph County Health Department You may ask yourself, "what is a food truck"? If asked the difference between a mobile food truck and food vending vehicle. A food vending vehicle includes any vehicles from which food items such as ice cream, candy or other food sundries are sold directly to a consumer at retail, and which is operated on any public road, street or other place within the city. 5 The Benefits of Food Trucks • Creates opportunities for local restaurants* • Encourages entrepreneurship* • Operating expenses are lower than a restaurant • Promotes a more vibrant environment** • Provides food options in outlying areas — i.e. Nello, Noble, Ignition Park, Rum Village, and Ameriplex • Encourages economic, social, and environmental growth *Seven Myths and Realities of Food Trucks **Streets.org case study on food truck vendors 1. Research has shown there are many benefits to food trucks. They create opportunities for local brick and mortar restaurants by increasing potential growth rather than deterring from it, they do this in the following ways: 1. The presence of food trucks increase the number of customers available, by attracting more people who are interested in FTs. *Seven myths and realities about food trucks 2. Food trucks also offer existing restaurants a great way to market and expand their business. B&Ms can then reach a greater audience, while utilizing the convenience of an already established location. They also provide the additional advertising, as well as, an audience to test new product and possible markets. Food trucks also give B&Ms a venue to provide additional employment for excess staff during slow season. *Seven myths and realities about food trucks 2. Food trucks serve as excellent incubators for entrepreneurs. Fewer start up costs allow entrepreneurs to test different concepts in new markets to determine the feasibility of permanent establishments. When the market response strongly supports the concept, entrepreneurs are better positioned to continue to grow. For 6 example— NY Food Truck Association has forty two members — of which 40% now have B&Ms. *Seven myths and realities about food trucks 3. Food trucks also promote more vibrant environments, for example in Portland, FTs have helped to encourage additional pedestrian traffic and promote social interaction in the public realm. This has a positive impact on revitalizing urban spaces and strengthening neighborhood vitality. *Case study on food truck vendors in Portland from re:streets.org 4. As development continues to grow in SB there are several outlying areas that have minimal food options. FTs will be able to provide dining options to places like Noble, Nello, Ignition Park, Rum Village and Ameriplex. Manufacturers like this frequently have a limited lunch hour, these trucks would serve as a good option for employees as well as a captive audience for FTs. One of the concerns that we hear from new companies as they look at these areas for development is that these locations are in food deserts, FTs are a creative way to address this concern. 5. Food Trucks strengthen local business by creating opportunities for local mechanics, local food vendors, and restaurants— in the form of commissary kitchens 6 svi fix 1.-.ends ,,.4I. a :,-. lbrmt ' 0) U ' - o MoieGoreArgen nian r4i A ` -V-- v i fir►• • ,;I 4 I i / MO i r. _.► I V I l , 4 l ■ I ® ,. � 1 s O r' IN ar la " M ._` Trends • Food Trucks generate about $650 million revenue annually across the nation* • Food Truck Courts are the newest part of the trend • Combination of live music, events and food • Food Truck Festivals gaining popularity • Food Trucks transitioning to full scale brick and mortars * National League of Cities 1. Food trucks currently generate about$650 million revenue annually and this is only expected to increase. In areas where ordinances have been changed to accommodate food trucks there has been significant economic development. * Food on Wheels (National League of Cities) 2. Food truck courts have become the newest part of the food truck trend, in various cities you have courts with rotating vendors during the week along with live music. These courts exist in both public & private spaces, establishing destinations for residents to enjoy, while creating vibrant spaces and introducing residents to the food truck culture. 3. Food truck festivals are occasions where food trucks from all over gather for a day or weekend and have an opportunity to introduce their products to new consumers who may not have tried a food truck before. It also offers communities a unique experience to sample culinary creations from their local regions. 4. Food trucks have become an avenue for aspiring restaurateurs to test their products in new markets. Across the country you see food trucks transitioning to full scale brick and mortars. When food truck owners are able to see the demand for their product in a market, they are more secure in making the capital investment required to start a full scale restaurant. 8 . ... -1.---• .. -- 1 — '''•— • ' ' ''."-.Food Truck Cbourts, „ _ . . ., ...,. _ . _ .. .,.. _-. —A: -4.• ',4...N. L. ^ . " A le - 1 ---- rAir.,...- _,.,,,,, 7 • . . . . ,- .. • 1:;,1:1-; __ - 4 lop- --Niori, . ,.---- ---',-" ,-------• ._ . -4mu, F •- j,t .. ..-V • . • -, "-t ,AP • , --Fg. , _.- :::7•7 t ..., , .,,,,7:61.1. ..git z mitt '. . - 1•.,-Iftiv,•-14,tvil • r'V' .* ,i; : Zahh, 7, •-t E.?!,,4 er-, 4.- .1116-"N't*no'rti. AL4,4...ivt . -:---, -,14 •••• • 4i'` 4 a: 0 1- ' . . . .'2','-',1 ,A , ' ,•• 4 ' ,--_,-- - i. 1Str: - ' , .. 1..,_ -7,..:,.,s:i .Ak• q. -- - ''' '.11'r.'''''' ...f: . __ .w V aii_t. _. .. , 1 1.• ' ' '" •.t.- - A c.i a .: , ;• \•.u.:\ Amp- ..t. . i .,-...., ;,. , , - ,....a - •- - , hit - •_- ■ ,, F, --.- — t- •—,''''..4.:11Ar --‘ 1F- ....It ';AO i - -,-—. ■ .. ... .. , - lir 1,„„uppuimpriverwwwl . -110. 3=p-.. •.. , ..i. .• •••• ..-. _....._. - .,_ ".. 9 The Process • Consultation with the St. Joseph County Health Department • Coordination with various City Departments and other stakeholder groups • Board of Public Works • South Bend Fire Department • Downtown South Bend • South Bend Police • Building Department Department • Code Enforcement • Downtown Dining Alliance • Identified deficiencies in current ordinance • Proposal of modified ordinance Amending the ordinance has been a lengthy & a very thorough process. In which we have consulted with the Heath Department on many occasions. • Because food trucks fall within the scope of the Health Department for regulation, the first step was to reach out to determine the feasibility and the necessary coordination to make it a reality. Working with the Health Department, we were able to identify and address some of the concerns that had served as roadblocks in the past (parking, tracking for inspections, commissary kitchen locations). Also as a result of the impact of the ordinance applying county wide, we contacted Mishawaka to inform them of our intention and to gain their feedback during the planning process to ensure that the changes would be practical throughout St. Joe County. • As we realized the scope of the involved departments that would be affected by the changes, we held several inter-departmental meetings to gather the necessary feedback to address concerns and trouble-shoot possible problems. This coordination involved: • BPW —with whom we established many of the rules & regulations and coordinated the necessary steps to allow for four hour parking—as a result, a resolution was approved by BPW on July 14th which will allow DTSB to be the 10 parking monitor & enforcer (Res. No. 29-2015) • DTSB—who conducted a study into the fee structures of other cities to determine what would be appropriate for this area and also agreed to coordinate the necessary parking monitoring and enforcement • The Building Department—was essential in addressing all zoning concerns and who will allow FTs on private property for up to 4 hours (anything longer than 4 hours will require an open-air business license in addition to the restaurant license) • Code Enforcement— will act as an enforcement entity when necessary for parking and ordinance adherence • The Fire Department— will inspect all FTs for fire hazards, ensure all necessary equipment and tanks are properly permitted, placed and functioning. • The Police Department—will have the ability to enforce parking when necessary • We also reached out to the Downtown Dining Alliance to inform them of the new opportunity the change in ordinance would create for them • After speaking with all the necessary departments, we worked with the Legal Department to amend the existing restaurant ordinance to allow food trucks to be included in it. 10 Parking and Operating Requirements • Locations • Regulations • Enforcement This brings up Parking & Operating Requirements. 1. Our belief is that food trucks will primarily be seen in the outlying areas of the City, where they have captive audiences with limited options for food and time for breaks. Frequently our office hears from incoming businesses that they are concerned about the lack of food options in these food deserts, such as areas like Blackthorn, & the west side industrial area. Our belief is that food trucks will serve as an economic tool for growth, not just in hospitality, but for industry as well. We believe that there will be food trucks in the downtown as well, but in a more limited capacity due to the prevalence of existing brick and mortars. 2. Once a food truck has received its business license, it will be allowed to park downtown for four hour stretches in any two hour designated parallel spot during the hours of 6 a.m.-6 p.m. DTSB will act as a monitor and enforcer for the parking regulations, as they do for all of the downtown business entertainment area. Outside of downtown, the police department and code enforcement will be able to ticket any food trucks that are in violation of the parking regulations. Any food trucks that opt to park on private property will need to have a signed usage agreement from the property owner authorizing them to vend at that location. 11 3. When a FT is found to be parking in violation of the ordinance, depending on the location, they can be cited either by DTSB, the Police Department, or Code Enforcement. 4. Upon learning that a MFT is operating without a license, or is operating in violation of its license, a warning notice will be sent stating that the MFT owner is in violation, and that the owner has 7 days to apply for a business license or correct the violation. Failure to do so, will result in a citation for the violation or a request to Code Enforcement to issue a $50.00 fine for each day the MFT operates in violation. If the violation is not taken care of, the city can seek injunctive relief and/or monetary penalties per the city ordinance. (Ch. 4, Article 2, Sec. 4-15) 11 Public Safety • Sanitation — Who Handles What • Tracking — How to Find Food Trucks • Safety — Ensuring Pedestrian Safety • Commissary Kitchens — Safeguarding Quality Let's discuss concerns regarding Public Safety. 1. We have worked hand in hand with the Health Department to ensure that any concerns in regard to food safety would be handled properly. They are following the State guidelines &the Natl. Sanitation Foundation Standards to ensure that all necessary steps are taken. (For example there are required temperature levels for the water tanks, portable water designations to ensure cleanliness, wastewater collection must be disposed of in an approved sewer or septic system and all equipment must be in good working condition & all products must come from an approved source). Food trucks will also have random Health Department visits in the same way that traditional Brick and Mortars do. 2. In conjunction with the Office of Innovation, we have developed a system that uses GIS to determine the locations of food trucks. When food trucks receive their business license, they will also receive a unique identifier that they will use to sign in to a system in which they will enter their location information. This information will then be accessible by the Health Department so they can perform surprise inspections at anytime. 3. Food trucks are required to only vend to the sidewalk side of the street, and never 12 from the back or the front of the truck when they are in public spaces. All parking must be parallel to the curb and only in spots in which there remains a distance of 5 feet between the truck and an existing structures to ensure pedestrian safety and all ADA requirements. 4. Per the St. Joseph County Health Dept., all food trucks are required to have a Health Department licensed commissary kitchen for daily use. Commissary kitchens will act as a "home base" for food trucks. Food trucks will use them for product storage, an area to clean their trucks, food prep, & disposal purposes 12 Licensing and Fees • Mobile Food Trucks are required to obtain a restaurant license with the City of SB • Business Occupational Restaurant License • Fees • $5 application fee; $525 License Fee • Sample Licensing fees: • Bloomington, IN - $350/annually • St. Louis, MO - $500/annually • Fort Wayne, IN - $600/annually • Noblesville, IN - $1,000/annually 1. Just like a B & M, Mobile Food Trucks are required to obtain a restaurant license with the City of SB. The license is valid for one calendar year and expires February 28th or March 315t (depending on the business name). There is a $5.00 application processing fee and the license fee is$525.00 per vehicle. (The fees cover administrative processing, monitoring, policing, additional cleanup, parking, and inspection fees.) In the event an application for a new license is submitted between now and December 2015, the fee shall be prorated to % of the yearly license fee, as per the city ordinance (Chapter 4, Article 3, Sec 4-17). To obtain a license, the vendor must complete an application and provide all the necessary documentation, pass the SBFD and Health Dept. inspections. A complete list of required documents can be found on DCI's website. In the case where a MFT is operating on private property, they must include a signed usage agreement from the property owner granting them permission to do so. Once the application has been reviewed and all information has been verified, a business license and decal will be issued so they may operate. 2. The licensing fees have been determined on what other cities similar to SB charge. For example: 13 • Bloomington, IN - $350/annually (population—82,575 in 2013) • St. Louis, MO - $500/annually (population-317,419 in 2044) • Fort Wayne, IN - $600 (assume 120 days x $5/day via parking meters) (population—256,496 in 2013) • Noblesville, IN - $1,000/annually (population—56,540 in 2013) Foodtruckempire.com estimates an average Food Truck License cost $500.00 13 Food Truck Myths • Food Trucks are transient entrepreneurs with no ties or loyalty to the community* • Food Trucks are inexpensive to operate and maintain** • Food Trucks are unsanitary • Food Trucks can park anywhere in the city *Seven Myths and Realities About Food Trucks **Indiana Dept.of Revenue and IRS Let's talk Food Truck Myths, Often there is a concern that food trucks are transient entrepreneurs with no ties or loyalty to the community. 1. However, successful food trucks are more likely to settle in areas where they have developed markets, even if they are not initially based locally. There are many cases of food trucks gaining popularity in cities and towns across the country and establishing B&Ms in those areas due to the popularity they have achieved in local markets. *Seven Myths and Realities about Food Trucks 2. The perception is that food trucks are inexpensive to operate and maintain. The reality is, food trucks are subject to many of the same fees as a restaurant. For example, FT owners must have a commissary kitchen which they either have to pay property taxes or rent, they must purchase liability insurance, a business license for each city they operate in, and a county health permit. In addition, they must register with the Indiana Dept. of Rev. for sales, use, and income taxes, and file w/ the IRS for an EIN for payroll taxes. Just like a restaurant, a food truck must spend money to train their employees, to purchase inventory, market their business as well as pay for maintenance & property taxes on the truck (if the value of the truck is $20,000.00 or more). **Indiana Dept. of Rev. and IRS 14 3. Historically the belief has been food trucks are unsanitary. In actuality,just like a restaurant, food trucks are subject to the same health regulations and are required to inform the health department of their whereabouts. In addition to the inspections of the truck, the food truck owners must also be concerned that their commissary kitchen receives a passing grade from the health dept. If the kitchen receives a failing grade, the food truck owner cannot operate until the commissary kitchen passes or it finds a new commissary. 4. Concerns that Food Trucks can park anywhere in the city have been addressed by insuring that Food trucks are prohibited from parking in restricted areas or areas that are residentially zoned neighborhoods, they shall not operate at a fixed location on any private or public property for more than four hours and are not allowed to park within a distance of 1,000 feet of a school grounds. A food truck can not park in a perpendicular parking space, 15 minute, 1 hour or a disabled persons parking space. (a FT that wishes to park longer than 4 hours on private property, may apply for an open-air business license that would need to be approved by the BPW, Building, & Code Enforcement) 14 Questions? At this time we will take any questions you may have. 15